Chrysler Suppliers: Start Paying in Greenbacks

Big 3 (specifically GM and Chrysler) suppliers are worried. So much so about the fate of their Detroit customers that they’re demanding cash for parts and services. Granted, they are not getting it just yet, but the requests are a sign that suppliers aren't going to bet on the solvency of the Big 3. According to the above-linked story, "A major oil company and a utility are demanding cash up front from ailing Chrysler LLC, offering a glimpse of the threat posed by a collapse of the North American auto supply chain." But it's not just large indirect suppliers that are worried. Some direct materials suppliers are past that phase including "metal stamping company PPI Holdings of Rochester Hill, Mich." which "filed for Chapter 11 bankruptcy protection" earlier in the month. So who is doing well thanks to Chrysler's and GM's woes? I saw a segment on CNN this weekend about the booming business that auctioneers are having in and around Detroit. Going once, going twice, sold! Sad, just really sad.